§ Lord Dixonasked Her Majesty's Government:
When they will respond to the proposals submitted by the Shipbuilders and Shiprepairers Association, Society of Maritime Industries and the British Marine Federation for follow-on funding to the current "Link" project, which is wholly committed and expires at the end of 2003; and [HL2405]
What new schemes they have to assist the British shipbuilding and ship repairing industry. [HL2406]
§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville)A proposal was submitted to my department in January 2003 by the Shipbuilders and Shiprepairers Association (SSA), acting in conjunction with the Society of Maritime Industries (SMI) and the British Marine Federation (BMF), for a further grant towards their Marine Industry Improvement Partnership. This application was very much at a conceptual level and contained no details of the number of companies to be assisted, nor the amount of grant being sought (although another related submission to the steering group of the Shipbuilding and Marine Industries Forum indicated that grants in excess of £5 million were likely to be requested).
This proposal has subsequently been discussed at meetings of the steering group of the Shipbuilding and Marine Industries Forum, most recently on 18 March 2003, as well as at a meeting held on 31 March of the SSA's steering group, which is managing the current £2.8 million grant.
The SSA, SMI and BMF attend the Shipbuilding and Marine Industries Forum and officials of my Marine Unit attend both the Shipbuilding and Marine Industries Forum and the SSA's steering group.
My officials have pointed out to the SSA that, before consideration could be given to further grants, the SSA would have to provide my officials with a full economic evaluation of the outcomes of the existing grant compared with the targets which were offered by the SSA in their first grant application. This evaluation has yet to start. More generally, the emphasis for DTI's entire business support programme for industry has been evolving over recent months in response to 85WA feedback from key stakeholders. I lead the Innovation Review, which will set out a strategy and action plan to improve innovation performance in the UK. In parallel with this, the implementation of the review of DTI business support is leading to a small number of new products clearly targeted at enhancing UK competitiveness. As a result, a smaller number of new business support products are being developed which will be broad, flexible and targeted at the needs of the customer, while aimed at driving up productivity through strategic investments in four key areas of activity: innovation, enterprise and best practice, investment and skills.
Within this approach to business support, DTI will continue to make investments in areas where evidence shows a real difference can be made to UK productivity and competitiveness, and where the market has failed to provide solutions to business needs. Proposals will be considered accordingly and those submitted by the Shipbuilders and Shiprepairers Association, Society of Maritime Industries and the British Marine Federation will be part of this process.
Meanwhile the first new business support products are starting to be rolled-out and more will follow in the course of the year.
My officials will continue to keep in close touch with the Shipbuilders and Shiprepairers Association, Society of Marine Industries and the British Marine Federation on this and other topics.
§ Lord Dixonasked Her Majesty's Government:
How much money the British shipbuilding industry has received from the Shipbuilding Intervention Fund. [HL2407]
§ Lord Sainsbury of TurvillePayments under the Shipbuilding Intervention Fund in the last five years have been:
£ millions FY 1997–98 7.01 FY 1998–99 10.54 FY 1999–2000 3.99 FY 2000–01 4.22 FY 2001–02 5.65 Estimated payments in FY 2002–03 will be in the order of £1.2 million. The Shipbuilding Intervention Fund was closed to new applications on 31 December 2000 in line with the withdrawal of contract subsidies across the EU.